Case Analysis on

Presented by,

Sambriddhi Ghimire

Sushil Neupane

Amit Pathak

Jay Poudel

Overview

• Background• Facts• Issue• Analysis• Conclusion• Recommendation

Current Scenario of Refrigerator Industry in India

• Market Value – Rs. 40 billion in 2011• Unsaturated Market

18% in Urban 2% in Rural

• Market Growth Urban : 7-10% Rural : 25%

Background

• Chotukool is a disruptive innovation by Godrej and Boyce.

• World’s Cheapest Fridge.• Designed for people of rural areas in India.• Operates on 12V DC, works on battery, inverter

or even solar power.• 43 Litres with no compressor, Only Cooling

Chip and Fan runs on batteries.• 20 parts

Insight

Situation Insight

80% of rural families in India do not own a refrigerator

Market Growth

Problem of Electricity or load shedding Electricity free

Less Space need to store less quantity of items like Milk.

Less Spacious

Rural Family lives in small Space Small and Portable

Market Growth

Electricity Free

Less Spacious

Small & Portable+ ++

Business Model

Facts

• Indian refrigerator market is values at IRS 40 billion.

• 80% of Indians do not own a refrigerator. • Disruptive innovation to produce chotukool.• Community led distribution model.• Focus on rural market.

Analysis

Segmentation & Positioning

• Segmentation– Demographic Segmentation

• Rural Area (Nasik, Latur)• Low Level Income

– Psychographic Segmentation• Those who can’t afford to have a fridge.• Those who don’t find the need of fridge

• Positioning– Low Cost Innovative Fridge for low level Income Market

Target

4P’s

•Mini Fridge•Portable•DC Supply

•Rural Part of India •Villages of Maharashtra and Goa

•NGO•Self Help Organization•Festival•Micro Financing Institution

•Low Cost•50% less than any other refrigerator•Rs

Product

Place Promotion

Price

Strategy

Product

Differentiation

Brand Building

Blue Ocean

The Logic and USP

Logic USP

To increase the convenience of the customer

Alternate Power option

To fulfill the consumer need in terms of Space accommodation.

Portable, Less Spacious

To provide the affordable product. Affordable enough for rural people.

To provide the product easily to every place Distribution channel focused on Rural part.

To provide the product user friendly Fit for rural consumer.

To avoid the servicing and maintaining the product

Minimal

Innovation Matrix

Product Market Business Model

E E N2nd Degree

Novelty

Same Technology

used.

Substitute Market

Business Model focused more on Entrepreneurship

Distribution Channel

• NGO – Pratham

• Self Help Organization– Swayam Shikshan Prayog, Sarva Sikhsha abhiyan

• Indian Post• Micro Financing Institutions – Dhanax

Conclusion

• A heavily anticipated product.• Disruptive innovation works in emerging

market

Recommendations

• Standardized product design.• Focus on urban areas as well.• Brand image as MNC in emerging markets.• Tapping foreign market and Investment.

Few Glimpse of ChotuKool